Also, I want to mention this so it doesn't get lost in the shuffle: someone traded exactly 666 shares of BMMO in. I love it when people totally get me.

https://bitcointalk.org/index.php?topic=77469.msg901464#msg901464 is acting as a live tally on the asset trade. I'm not going to leave this window open forever. Once Bitcoinica's destruction stops effectively halting GLBSE and everything is flowing the way it should again, the window gets closed and everyone has to buy shares the more expensive way.

Don't wait, act now, orders in the next 20 minutes get free S&H, etc etc. You know the drill.

Buy 2 shares of X for 0.6 BTC, trade them for 1 share of DMC and sell them for slightly less than 1 BTC...

I'm not really sure if you can keep up this model much longer without seriously hurting your IPO income.

https://bitfinex.com <-- leveraged trading of BTCUSD, LTCUSD and LTCBTC (long and short) - 10% discount on fees for the first 30 days with this refcode: x5K9YtL3ZbMail me at Bitmessage: BM-BbiHiVv5qh858ULsyRDtpRrG9WjXN3xf

Buy 2 shares of X for 0.6 BTC, trade them for 1 share of DMC and sell them for slightly less than 1 BTC...

I'm not really sure if you can keep up this model much longer without seriously hurting your IPO income.

I'm not sure this was intended to happen, but it certainly has. If he sells all 200k shares, percentage-wise, the impact is still small, but I agree, this can do naught but dilute the value of DMC shares.

Buy 2 shares of X for 0.6 BTC, trade them for 1 share of DMC and sell them for slightly less than 1 BTC...

I'm not really sure if you can keep up this model much longer without seriously hurting your IPO income.

I've recently answered this for someone else, so I might as well repeat it here.

Some people are viewing this premium as strictly "buy DMC for 2/3rds the cost", which is not entirely true. Up front, yes, you buy the DMC shares for that, but you give up two short term abilities: dividends (they are cut in half as per the 50% dividend/50% growth agreement in the contract), and the ability to sell (there is not a huge demand for DMC shares yet as the company is still new). If you factor in all the "lost" dividends until DMC dividends increase past what you would have originally gotten from the original bonds, it evens out in the short term.

Also, there is this other issue where if they keep buying shares to sell to me, the effective premium I paid/pay on past/future shares goes down because value increase. Not that I'm complaining, mind you, it'd help everybody in the Bitcoin world if bond prices started rising.

Still, theres a fair bit to go on that. If people want to go buy 1000 shares of something right now and trade me, it might not effect some of the bonds too much and still be worth it for them and still worth it for me.

Buy 2 shares of X for 0.6 BTC, trade them for 1 share of DMC and sell them for slightly less than 1 BTC...

I'm not really sure if you can keep up this model much longer without seriously hurting your IPO income.

I'm not sure this was intended to happen, but it certainly has. If he sells all 200k shares, percentage-wise, the impact is still small, but I agree, this can do naught but dilute the value of DMC shares.

I really doubt I can exchange all 200k shares this way. However, if someone wants to try, they are more than welcome.

Buy 2 shares of X for 0.6 BTC, trade them for 1 share of DMC and sell them for slightly less than 1 BTC...

I'm not really sure if you can keep up this model much longer without seriously hurting your IPO income.

I'm not sure this was intended to happen, but it certainly has. If he sells all 200k shares, percentage-wise, the impact is still small, but I agree, this can do naught but dilute the value of DMC shares.

I really doubt I can exchange all 200k shares this way. However, if someone wants to try, they are more than welcome.

I meant that if the rest of the shares are bought @ 1 BTC each, the effect of what bond exchanges have happened on DMC's assets would be negligible. Not enough bonds exist right now, so even if someone wanted to buy the remaining shares with bonds, they wouldn't be able to.

Buy 2 shares of X for 0.6 BTC, trade them for 1 share of DMC and sell them for slightly less than 1 BTC...

I'm not really sure if you can keep up this model much longer without seriously hurting your IPO income.

I'm not sure this was intended to happen, but it certainly has. If he sells all 200k shares, percentage-wise, the impact is still small, but I agree, this can do naught but dilute the value of DMC shares.

I really doubt I can exchange all 200k shares this way. However, if someone wants to try, they are more than welcome.

I meant that if the rest of the shares are bought @ 1 BTC each, the effect of what bond exchanges have happened on DMC's assets would be negligible. Not enough bonds exist right now, so even if someone wanted to buy the remaining shares with bonds, they wouldn't be able to.

There isn't enough bonds, but I think the larger bonds are growing to accommodate my plans. YABMC just launched a huge expansion project, for example.

Sales seem to be nonexistent - sell orders @ 0.75 now on GLBSE. What do you intend to do if the IPO fails to attract any more attention? (And when do you intend to pay dividends on the mining company shares/bonds currently held by DMC?)

He intends to pay monthly, 50% of income as dividends - probably in ~1 week then. Currently this would mean he'd pay ~1MH/s PPS since the IPO launched...

https://bitfinex.com <-- leveraged trading of BTCUSD, LTCUSD and LTCBTC (long and short) - 10% discount on fees for the first 30 days with this refcode: x5K9YtL3ZbMail me at Bitmessage: BM-BbiHiVv5qh858ULsyRDtpRrG9WjXN3xf

Sales seem to be nonexistent - sell orders @ 0.75 now on GLBSE. What do you intend to do if the IPO fails to attract any more attention? (And when do you intend to pay dividends on the mining company shares/bonds currently held by DMC?)

People have actually been buying up all those shares. Its mostly all people who bond swapped for a quick buck trying to flip their DMC shares to rinse and repeat. I know where most of the straight out purchased DMC shares are, and they're all sitting on them. In fact, many are quite happy to buy up a lot of those flipped shares just so they can increase their DMC holdings.

Generally, most of the almost 1200 shares sold are being sat on for the long term.

As for dividends, yes, I intend on paying out on those. Bonds are virtual hash power to me, its no different than buying hardware at a slight premium*. I'm treating May as a half month so we can start paying out monthly on the first. It won't be much, but it will be enough to spur more share sales as people reinvest their earnings.

* Buying non-BFL hardware in small numbers is in the lower 0.60s per mh/$. After expensive residential electricity and waiting for delivery, we're in the lower 0.50s mh/$. I'm buying bonds at a premium that puts us at in the lower 0.40s mh/$ in the short term, lower 0.50s mh/$ in the longer term. It ends up evening out and it also helps people buy into DMC and rebuild their investment portfolio now that Bitcoinica is unlikely to payout what they owe.

Some people are viewing this premium as strictly "buy DMC for 2/3rds the cost", which is not entirely true. Up front, yes, you buy the DMC shares for that, but you give up two short term abilities: dividends (they are cut in half as per the 50% dividend/50% growth agreement in the contract), and the ability to sell (there is not a huge demand for DMC shares yet as the company is still new).

I'm not sure I can agree with this argumentation. The market should (in theory) have already factored all of these things into the price of the asset. If you are saying that 2x YABMC at 0.6 BTC (total) is really sort of equal to 1x DMC at 1 BTC after all things considered, then apparently the market disagrees or - since in this case the DMC price is just an arbitrary price set for the IPO - you have lowered the IPO price of your shares retroactively. That's not exactly fair to anyone who has bought shares at 1 BTC as they are now, as others have pointed out, in fact being diluted.

Well, just my two cents. In any case, looking forward to see where this project is going! :-)

Some people are viewing this premium as strictly "buy DMC for 2/3rds the cost", which is not entirely true. Up front, yes, you buy the DMC shares for that, but you give up two short term abilities: dividends (they are cut in half as per the 50% dividend/50% growth agreement in the contract), and the ability to sell (there is not a huge demand for DMC shares yet as the company is still new).

I'm not sure I can agree with this argumentation. The market should (in theory) have already factored all of these things into the price of the asset. If you are saying that 2x YABMC at 0.6 BTC (total) is really sort of equal to 1x DMC at 1 BTC after all things considered, then apparently the market disagrees or - since in this case the DMC price is just an arbitrary price set for the IPO - you have lowered the IPO price of your shares retroactively. That's not exactly fair to anyone who has bought shares at 1 BTC as they are now, as others have pointed out, in fact being diluted.

Well, just my two cents. In any case, looking forward to see where this project is going! :-)

The market isn't very efficient here, sadly. The market is not factoring in the fact that I only pay out 50% of the bond dividends, the other 50% is going into the growth fund (which is now just buying more bonds). I would have to wait like 3 months or more to get any hardware I buy... bond dividends being cycled directly back into more bond purchases for those 3 months will start rapidly catching us up. We've already gone from 0.40 mh/$ to 0.41 mh/$ after one week, we should be 0.41 -> 0.43 by the next weekly bond dividend payout.